Citigroup to pay nearly $300 million to settle SEC suit

Citigroup to pay nearly $300 million to settle SEC suit (Full Version)

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Lucylastic -> Citigroup to pay nearly $300 million to settle SEC suit (10/19/2011 5:38:04 PM)
Reporting from New York— Citigroup Inc. is paying nearly $300 million to settle a civil fraud complaint that the banking giant promoted an investment tied to the housing market, yet failed to tell investors it was betting those securities would fail. The Securities and Exchange Commission alleges that Citigroup packed the $1-billion investment with assets that eventually buckled during the mortgage meltdown. Citigroup traders bet against the security, or shorted it, making money at the expense of its clients, the complaint says. One trader wrote in an email obtained as part of the SEC investigation that the Citigroup investments were possibly "the best short EVER!" An investment manager at another company wrote, "The portfolio is horrible" in an email about the securities that wiped out investors when the investments defaulted in November 2007. "Investors were not informed that Citigroup had decided to bet against them and had helped choose the assets that would determine who won or lost," said Robert Khuzami, director of the SEC's enforcement division. The settlement is the latest in a number of regulatory actions against banks for their role during the housing market collapse and ensuing financial crisis. The SEC has been investigating how Wall Street firms packaged risky mortgages into instruments such as collateralized debt obligations and other investments, which imploded when housing markets tumbled. Goldman Sachs Group Inc. agreed to pay $550 million to settle claims that it failed to tell clients that the investment bank was betting against some of its mortgage-related securities. JPMorgan Chase & Co. agreed in June to pay $153.6 million on similar accusations, and the SEC has pledged that other major banks are still under scrutiny. But ya, its not wall street thats the problem is it http://www.latimes.com/business/la-fi-citigroup-sec-20111020,0,2537471.story

Termyn8or -> RE: Customers and/or taxpayers to pay nearly $300 million to settle SEC suit (10/19/2011 5:46:36 PM)
Correected the title forya. T^T

tazzygirl -> RE: Customers and/or taxpayers to pay nearly $300 million to settle SEC suit (10/19/2011 5:51:13 PM)
Amazingly correct T!

Lucylastic -> RE: Customers and/or taxpayers to pay nearly $300 million to settle SEC suit (10/19/2011 6:00:46 PM)
thankyou T:)

MasterSlaveLA -> RE: Citigroup to pay nearly $300 million to settle SEC suit (10/19/2011 6:01:41 PM)
Good... now let's see some JAIL TIME for those who stated Freddie and Fannie were sound.

tazzygirl -> RE: Citigroup to pay nearly $300 million to settle SEC suit (10/19/2011 6:13:28 PM)
quote: Dodd, who chairs the Senate Banking Committee, said he had spoken earlier with representatives from the Federal Reserve, Treasury Department, the executives of Fannie Mae and Freddie Mac, as well as their regulator, the Office of Federal Housing Enterprise Oversight. He said he was reassured that the firms are "fundamentally sound," have access to the capital markets, and have plenty of capital. http://www.marketwatch.com/story/sen-dodd-calls-fannie-freddie-fundamentally-strong Senator Dodd... yep.. go get him. Federal Reserve... all yours. Treasury Department... prosecute them... the head at the time was Henry Paulson. Henry Merritt "Hank" Paulson, Jr. (born March 28, 1946) is an American banker who served as the 74th United States Secretary of the Treasury. He previously served as the Chairman and Chief Executive Officer of Goldman Sachs. Office of Federal Housing Enterprise Oversight. Headed by James B. Lockhart III at the time.... For the prior 7 1/2 years, he served in the US Government in a series of Presidential-appointed, Senate-confirmed positions. He was the Director (CEO) and Chairman of the Oversight Board of the Federal Housing Finance Agency (FHFA), the regulator of Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks. He assumed that position with the signing of the Housing and Economic Recovery Act on July 30, 2008. He was the Director of the Office of Federal Housing Enterprise Oversight (OFHEO), which is now part of FHFA. He was nominated to that position by President George W. Bush, a friend of his from prep school, college and business school,[2] and confirmed by the United States Senate in June 2006. Im all for it... take them all down... their bosses too.

Lucylastic -> RE: Citigroup to pay nearly $300 million to settle SEC suit (10/19/2011 6:17:45 PM)
absolutely Tazzy I have zero issues with trying all of the scum sucking ditch pigs

tazzygirl -> RE: Citigroup to pay nearly $300 million to settle SEC suit (10/19/2011 6:19:28 PM)
Just as long as they get "all"

Lucylastic -> RE: Citigroup to pay nearly $300 million to settle SEC suit (10/19/2011 6:21:23 PM)
yeah, well we know that wont happen.

willbeurdaddy -> RE: Citigroup to pay nearly $300 million to settle SEC suit (10/19/2011 6:23:09 PM)
quote: ORIGINAL: MasterSlaveLA Good... now let's see some JAIL TIME for those who stated Freddie and Fannie were sound. What do you get when you put Maxine Waters and Barney Frank in a jail cell together? Absolutely nothing.

tazzygirl -> RE: Citigroup to pay nearly $300 million to settle SEC suit (10/19/2011 6:23:13 PM)
yep, never will.

MasterSlaveLA -> RE: Citigroup to pay nearly $300 million to settle SEC suit (10/19/2011 6:55:39 PM)
quote: ORIGINAL: willbeurdaddy quote: ORIGINAL: MasterSlaveLA Good... now let's see some JAIL TIME for those who stated Freddie and Fannie were sound. What do you get when you put Maxine Waters and Barney Frank in a jail cell together? Justice... and possibly one very ugly/stupid kid -- even Barney might tap that ass after enough time behind bars. [8D][:D]

Owner59 -> RE: Citigroup to pay nearly $300 million to settle SEC suit (10/19/2011 7:39:45 PM)
Frank had nothing to do with Shitygroup`s swindling it`s investors..... Or with any of the bush-crash.... This guy had everything to do with it,with getting the rules changed so that banks could use other people`s money to gamble with.

Masta808 -> RE: Citigroup to pay nearly $300 million to settle SEC suit (10/19/2011 7:53:30 PM)
Considering Citigroup took $45 Billion in TARP money that was passed by OBAMA thats what? 0.63%? What is this Geithner's idea of punishing Corporations & banks that had nothing to do with Economic Collapse. Progressive liberals will not stop blaming wall street and the banks for their misfortunes. What now Obama going to start seizing corporate assets to pay for the TARP funds you made us pay for to destroy business?

Edwynn -> RE: Citigroup to pay nearly $300 million to settle SEC suit (10/20/2011 12:07:05 AM)
quote: ORIGINAL: Masta808 Considering Citigroup took $45 Billion in TARP money that was passed by OBAMA thats what? 0.63%? What is this Geithner's idea of punishing Corporations & banks that had nothing to do with Economic Collapse. It was ex-Goldman Sachs CEO Treasury Secretary Hank Paulson that started the TARP snowball, under Bush, in 2008. (Then again, Paulson was as much "ex-CEO" of GS as Cheny was "ex-CEO" of Haliburton while holding office. Sheer coincidence how well things worked out for their "former" companies in both cases). The banks had nothing to do with the economic collapse? No? You mean, Obama retroactively leaped Einsteinian relativity and forced all those collateralized debt obligations (CDO) and concomitant no-doc sub-prime loans in 2002-2007? And all the 'credit default swindles' (oops, I meant "credit default swaps")? And all the "rocket-docket" foreclosure scams afterwards? And that Citigroup did not throw fuel on that fire by wrangling all those CDOs into their commercial paper, thereby buying their own crap toxic securities to drive up the demand and then foist it upon others? And thereby cause previously safe money market mutual funds to take the unprecedented step of reducing "share price" of account holders? You mean all that that the banks and corporations had "nothing to do with"? Good boy! You can join Willbe and Firm in the politico/avoid-reality-at-all-costs corner now. Enjoy your candy cigar, there.

Fightdirecto -> RE: Citigroup to pay nearly $300 million to settle SEC suit (10/20/2011 8:06:25 AM)
Don't you just LOVE our banking system... [image]local://upfiles/42188/3363FB7528C04DDAB1416C0185383037.jpg[/image]

Lucylastic -> RE: Citigroup to pay nearly $300 million to settle SEC suit (10/20/2011 1:19:15 PM)
Excellent:) LOL

FirstQuaker -> RE: Citigroup to pay nearly $300 million to settle SEC suit (10/20/2011 2:05:00 PM)
I have to agree that jailing the CEOs and boards of the directors would be a more effective means of installing some semblance of a moral compass in these corporations. Most of the banks and such would be habitual criminals and jailed for life under the three strikes laws if they were real people instead of corporate people. This appears to be the 12th time Citigroup have been fined for felony level behavior (i.e. fraud, money laundering, etc.) in the last decade or so.

SternSkipper -> RE: Citigroup to pay nearly $300 million to settle SEC suit (10/20/2011 2:50:12 PM)
quote: Reporting from New York— Citigroup Inc. is paying nearly $300 million to settle a civil fraud complaint that the banking giant promoted an investment tied to the housing market, yet failed to tell investors it was betting those securities would fail. Share holders needn't worry ... they did it with the money they ALREADY stole.

MasterSlaveLA -> RE: Citigroup to pay nearly $300 million to settle SEC suit (10/20/2011 11:37:44 PM)
quote: ORIGINAL: Edwynn Did you come up with that stroke of genius at work. . . between asking people, "Do you want fries with that?" [sm=rofl.gif]

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